Tesla Motors, Inc. (TSLA), Toyota Motors Corporation (TM): Auto Stocks With the Highest Percentage of Shares Shorted

Related tickers: Toyota Motors Corporation (NASDAQ:TM), Tesla Motors, Inc. (NASDAQ:TSLA)

For all investors interested in the auto manufacturers industry, the figures released by the S&P index have allowed us to compile yet another countdown. Today’s focus will be on auto stocks with the highest percentage of shares shorted. The indicator taken into account, the float short, represents the percentage of a company’s shares which are in a short position.

This indicator is important to follow, because the higher the ratio is, the likelier is that share prices will go down, making it a good opportunity for traders who are in the short selling business to make some money. At a first glance, the auto manufacturers industry does not draw too much attention in terms of float short ratios, with only two stocks having a percentage higher than 12%.

Toyota Motors Corporation (NASDAQ:TM) made the top 8 on the very last position, with a float short ratio of only 0.05%. Share prices for Toyota Motors Corporation (NASDAQ:TM) have been on the rise since the end of last year ($85.00) to the first month in 2013’s second financial quarter ($121.28). Considering its almost insignificant float short ratios, share prices are unlikely to experience a short-driven decrease in the near future.

At the other end of the spectrum is the undisputed leader in terms of float short ratio, Tesla Motors, Inc. (NASDAQ:TSLA). This company, with a market capitalization of 8.85 billion, boasts an impressive float short ratio of 41.81%, which is more than double that of the second auto stock in our countdown. Similar to the stock market evolution experienced by Toyota Motors Corporation (NASDAQ:TM), share prices for Tesla Motors, Inc. (NASDAQ:TSLA) have also risen considerably since December, 2012. More specifically, they have gone up from $35 to over $91. However, in this particular case, the impressive float short ratio is a strong indicator that would suggest prices will not continue their increase and that they may even experience a slight downward spiral.

We would like to present you with 8 auto manufacturers stocks that display a high float short ratio. Apart from Toyota Motors Corporation (NASDAQ:TM) and Tesla Motors, Inc. (NASDAQ:TSLA), our countdown also features Honda Motor Co., Ltd. (NASDAQ:HMC), Ford Motor Co. (NASDAQ:F), and General Motors Company (NASDAQ:GM).

Let’s see it:

No. 8: Toyota Motors Corporation (NASDAQ:TM)

Market Capital: 209.09B

Float: 1.53B

Float short: 0.05%

Short ratio: 1.38

No. 7: Honda Motor Co., Ltd. (NASDAQ:HMC)

Market Capital: 73.16B

Float: 1.81B

Float short: 0.05%

Short ratio: 1.79

No. 6: Tata Motors Ltd. (NASDAQ:TTM)

Market Capital: 15.95B

Float: 1.77B

Float short: 0.11%

Short ratio: 1.15

No. 5: SORL Auto Parts, Inc. (NASDAQ:SORL)

Market Capital: 55.97M

Float: 7.95M

Float short: 0.73%

Short ratio: 1.18

No. 4: Ford Motor Company (NASDAQ:F)

Market Capital: 55.47B

Float: 3.85B

Float short: 1.72%

Short ratio: 1.89

No. 3: Kandi Technologies, Corp. (NASDAQ:KNDI)

Market Capital: 136.67M

Float: 19.71M

Float short: 3.74%

Short ratio: 10.50

No. 2: General Motors Company (NASDAQ:GM)

Market Capital: 43.19B

Float: 550.66M

Float short: 12.26%

Short ratio: 6.02

No. 1: Tesla Motors, Inc. (NASDAQ:TSLA)

Market Capital: 8.85B

Float: 73.41M

Float short: 41.81%

Short ratio: 9.23